Market Lab Report – Premarket Pulse 1/13/16

By | January 13, 2016

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Major averages rose on mixed volume. Economic news out of China on their export data came in above expectations sending oil and European stocks higher in relief-rally fashion as markets are due for a bounce after the drubbing they have endured. Nevertheless, China’s Shanghai Composite Index fell another 2% continuing its downtrend. Futures are higher by more than half a percent at the time of this writing. Watch for short sale set-ups that may emerge during this bounce which may be short-lived. Most former big-stock leaders have broken down through their 50-day moving averages, and in some cases even their 200-day moving averages, such as PANW and LNKD, for example. As the market rallies we are also watching for potentially shortable rallies in names like FB, AMZN, NFLX, GOOGL, MSFT, and others. Some of these rallies may occur as a function of a perceived “strong” earnings report that sparks a gap-up move that can be shorted into. We saw that in AAPL back in July of last year. Currently, we see NFLX as shortable here using the 50-day moving average as a tight stop. The company announces earnings on January 19th, so one either looks for a quick breakdown from the 50-day moving average before earnings, or looks to hold a small position, at most, going into earnings. Scalper1 News

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